Search Web & Scott's Blog

Tuesday, March 16, 2010

You need Homeowners insurance to close on your home.

5 Key Concepts of Home Insurance

If you plan to buy a home in the near future, you should be researching the various components of homeowners insurance. Why? Because you’ll need to have a policy in place by the time you close on the house. In fact, your lender will require you to provide proof of insurance on closing day.

Here are five important things you need to know:

1. Understanding Premiums and Deductibles

Here are two key definitions you should know, before we go any further: The home insurance premium is the amount you pay for the policy. The deductible is what you’ll have to pay if you ever make a claim against the policy, before the insurance company will pay the rest. If you can keep these two definitions in mind, everything else will make more sense. Let’s move on to discuss the relationship between these two things.

2. Raising the Deductible Can Lower the Premium

Premiums and deductibles generally have an inverse relationship. This means you can lower your premium (the amount you pay every year) by raising your deductible. A lot of financial experts recommend this very strategy, as way of lowing the overall cost of insurance.

According to the Insurance Information Institute: “If you can afford to raise your deductible to $1,000 [as compared to the standard $500 deductible], you may save as much as 25 percent.”

3. There are Other Ways to Control Costs

So how much does a homeowners insurance policy cost, anyway? In the United States, the average policy costs about $800 per year. This is just for the premium, which is the amount you pay year after year. Deductibles vary from one policy to another, and they can be raised or lowered by the insured party.

You can lower the cost of coverage by increasing your deductible amount (mentioned earlier), by shopping around for competing offers, and by getting a multi-policy discount from your current insurance company.

4. Replacement Cost is Better Than Cash Value

When you choose a home insurance policy, you will probably be asked to choose between replacement cost and actual cash value (as they pertain to your belongings). Replacement cost offers more protection, because it will replace the items you have lost with comparable items — even if they are worth more today than when you bought them.

Take a big-screen television, for example. If you lose a model that’s ten years old, it’s possible that a newer but comparable model will cost hundreds more than what you paid for your older model. Replacement-cost coverage will pay the higher amount. Cash-value coverage will only give you what you paid, ten years ago.

5. Flood Protection is Extra

Did you know that most homeowners policies do NOT offer flood protection? It’s true. So if you live in an area where there’s a reasonable risk of flooding, you should get a separate policy or a “rider” for flood coverage. You can learn more from the federal government’s website at

These are the most important concepts to keep in mind when shopping for homeowners insurance. Obviously, there is more to the picture than what is discussed in this article. But if you keep these concepts in mind, you’ll have a much easier time choosing a policy.

Friday, March 12, 2010

Consider Scott for your Realtor

In your search for a competent real estate agent let me share with you how I try to cultivate that quality. You can judge whether I deserve the opportunity to work for you.

I’m on the job for you everyday

There’s an old saying, “All things come to him who waits” but unfortunately at times it’s just the scraps from the people who got there first. Not only will I show up when I’m expected, but I will also be ready to engage in the real estate transaction no matter what kind of circumstances or how difficult the hurdles may be.

2. I’m dedicated to keep improving

I continually search for ways to keep learning, growing, and improving in my knowledge of marketing real estate. Just like any 5yr old, I ask why, because the person who knows how will always have a job, but the person that knows why will always be the boss. I seek to be on the cutting edge to assist in all your housing needs.

3. Complete with excellence

Willa Foster said, “Quality is never an accident, it is always the result of high intentions, sincere effort, intelligent direction, and skillful execution, it represents the wise choice of many alternatives.” When you entrust me to represent your real estate interests you can expect me to perform at a high level of excellence and adhere to strong ethical business practices. I play the within the boundaries of the game.

I hope these 3 points give you some insight into why you would consider me for your real estate agent.

Thursday, March 11, 2010

Rural developement $ running out!!!

Very important news came out yesterday. USDA or Rural development is estimating they’ll run out of funds by the end of April. This 100% no money down, no PMI, purchase program is highly utilized in the state of Wisconsin. Buyers who are or who want to use this financing they must secure funds now. There is no set date to these funds being gone…but once they’re gone, they’re gone. USDA must petition Congress for more money to fund the program and it’s unknown at this time when/if that will happen.

Monday, March 8, 2010

Home Buying Tip (Credit Score)

Paying your bills on time is the single most important contributor to a good credit score. Even if the debt you owe is a small amount, it is crucial that you make payments on time.

Tuesday, March 2, 2010

The best way to avoid foreclosure is to prevent the filing of a "Notice of Default." Lenders do not want to foreclose but will file a Notice of Default to protect their interests, if necessary. If you know you are unlikely to meet your mortgage obligation, call your lender. Many lenders work and live in your local community and they don't want to see you lose your home. There are several options available to avoid foreclosure that I will share in upcoming blogs.